HMRC collects record £5bn in inheritance tax

HMRC collected a record £5.1bn in inheritance tax in the year June 2016 to May 2017, according to private client law firm Wilsons.

The record amount represents a 9% rise when compared to the previous year’s figure of £4.7bn.

Wilsons said that more estates are now subject to the tax given the inheritance tax threshold freeze at £325,000. The current rate stands at 40%.

Tim Fullerlove, partner at the firm, warned that some families could be left with large inheritance tax bills. He said: “A substantial amount of wealth is now being taken by the government through IHT. What upsets people is that this is wealth that is being taxed twice.

“It is important that people start planning as early as possible how they mean to pass their wealth on to their children or grandchildren. If they do not do this, families could be met with large IHT bills.”

In May this year, UHY Hacker Young said that Inheritance tax relief claimed on charitable donations was predicted to reach £900m next year.